Thanks Alex, thats good explaination, but where my understanding gets confused is why I see the PE-CE remote route in the bgp.l3vpn table, apologies if I'm not seeing the obvious here:
user@MXrouter> show route table bgp.l3vpn.0 protocol bgp
bgp.l3vpn.0: 44 destinations, 54 routes (44 active, 0 holddown, 0 hidden)
+ = Active Route, - = Last Active, * = Both
64512:10190:10.100.200.0/29
*[BGP/170] 5w1d 00:46:50, localpref 100
AS path: 65534 I, validation-state: unverified
> to 10.1.1.2 via xe-1/0/0.0
user@MXrouter> show route table bgp.l3vpn.0 10.100.200.0/29 detail
bgp.l3vpn.0: 44 destinations, 54 routes (44 active, 0 holddown, 0 hidden)
64512:10000:10.100.200.0/29 (1 entry, 1 announced)
*BGP Preference: 170/-101
Next hop type: Router, Next hop index: 765
Address: 0x~~~~~~~
Next-hop reference count: 30
Source: 10.1.1.1
Next hop: 10.1.1.2 via xe-1/0/0.0, selected
Session Id: 0x###
State: <Secondary Active Ext>
Local AS: 64512 Peer AS: 65534
Age: 1w5d 16:46:00
Validation State: unverified
Task: BGP_65534_64512.10.1.1.2
Announcement bits (1): 1-BGP_RT_Background
AS path: 65534 ?
Communities: target:65535:11110002 target:65536:11110003
Accepted
Localpref: 100
Router ID: x.x.x.x
Primary Routing Table TEST1.inet.0